As you know, I have posted the more articles on Dayang than any other stock. Why should I write this piece? Since the daily volume changed hands is tens of million shares, whether you buy or sell will not make much difference. However, my intention is honourable. I wish to share with you my knowledge and help you make more profit.
If you look at the price chart above carefully, the price plunged when the company reported a small loss of 0.43 sen EPS for the 1st quarter on 22 May due to the monsoon which has delayed the company’s contract works. Let me tabulate the EPS for the last 5 quarters so that you can have a clearer picture of the situation.
1st Q 2019 EPS = – 0.43 sen (loss) monsoon
4th Q 2018 EPS = 10.13 sen
3rd Q 2018 EPS = 5.15 sen
2nd Q 2018 EPS = 4.03 sen
1st Q 2018 EPS = – 2.21 sen. (loss) monsoon
Just based on the company’s earning patent as above, you can expect the company to report increasing profit for the next 3 quarters thus complying with my golden rule for share selection. Profit growth prospect is the most powerful catalyst for moving share price. Moreover, the company has recently reported that it has secured additional contracts.
After I seeing the aggressive buying of Dayang shares recently especially yesterday when the price shot up 4 sen, I am more confident that the price will continue to go higher and higher. It looks like there are a few big funds buying Dayang aggressively.
It looks like déjà vu. This situation reminds me of Lii Hen and Latitude Tree which shot up more than 800% within 2.5 years and VS Industry shot up 550% within 2 years. You can read all about these from my previous article namely “My Track Record”.
I am obliged to tell you that 90% of my holdings is Dayang. I am not encouraging you to buy or sell. But if you decide to buy or sell, you are doing at your own risk.